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Calculation of Profitability ratios -
2008
2009
2010
G
Net Sales
8506616
11993699
16064038
H
Gross Profit
2145345
2940480
3782294
I
Net Profit
327743
450086
627643
J
EBIT or Operating Profit (Net)
660135
935835
1182927
K
Equity
1277659
1690493
2257267
L
Total Assets
3103645
4049092
5131809
Net Profit Margin ( I / G)
3.85%
3.75%
3.91%
Gross Profit Margin (H / G)
25.22%
24.52%
23.55%
Return on Equity (I / K)
25.65%
26.62%
27.81%
Return on Total Assets (J / L)
21.27%
23.11%
23.05%
As shown by above, out of the four ratios except Gross Profit Margin all other ratios have improved in 2010 as compared to 2008. However, both the Net margin and the Gross margin have declined in 2009 as compared to 2010. The company has shown better performance in terms of return on equity as well as return on total assets in both the years i.e. 2009 and 2010 as compared to 2008.
Overall, it can be said that 2010 has been a good year for the company in terms of profitability and overall the company has been moderately profitable with marginal increase in profit percentages.
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